Nigeria - Travel & Tourism: A domestic tourism driven market (Strategy, Performance and Risk Analysis)
In terms of total tourist volumes, Nigeria is ranked third in the Middle East and Africa, after Saudi Arabia and South Africa. Nigeria is expected to witness strong growth in terms of domestic trips, as total tourist volumes reached 38.8 million in 2016 and are expected to reach 55.4 million by 2021.
Domestic trips accounted for 93.7% of the total tourist volumes in 2016 and increased at a CAGR of 12.7% over 2012-2016. This increase is due to government initiatives to promote domestic tourism in Nigeria. Conversely, international arrivals declined at a CAGR of -1.5%, from 0.83 million in 2012 to 0.78 million in 2016.
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Government initiatives to foster increase in domestic trips
Total tourist volumes increased at a CAGR of 12.0%, from 24.7 million in 2012 to 38.8 million in 2016. Tourist volumes are expected to increase at a CAGR of 7.4%, from 41.7 million in 2017 to 55.4 million in 2021. Growth will be realized through government initiatives. Domestic tourist volumes increased at a CAGR of 12.7%, from 22.5 million in 2012 to 36.4 million in 2016, and is expected to increase at a CAGR of 7.4%, from 39.1 million in 2017 to 52.0 million in 2021. This will be supported by the government’s initiatives, including the launch of the Tour Nigeria brand and the implementation of the country’s CHIEF strategy.
Competition led the decline in revenue per available room
Total revenue per available room witnessed a CAGR of -5.9%, from US$196.7 in 2012 to US$154.4 in 2016, and is forecast to post a CAGR of -11.9%, from US$136.9 in 2017 to US$82.5 in 2021.
Currency and foreign exchange issues led to a decline
In 2016, passenger airlines revenue declined by -20.1%, from US$1,515.4 million in 2015 to US$1,210.5 million in 2016. This decline was due to suspended operations by airlines due to foreign exchange challenges.